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Illustration: What Schedule C Really Costs You at Tax Time

Tax Planning

What Schedule C Really Costs You at Tax Time

Dan Hodges

Schedule C is where sole proprietors report business profit and loss. The net profit then flows to your 1040 and is hit by both income tax and self-employment tax.

Most owners are surprised by the self-employment portion. This post breaks down the math and the deductions that move the needle.

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